Change Order Conversation SOP

Purpose

Define a consistent process for handling change orders during work in progress: when scope expansion is discovered, when the customer requests changes, when conditions on site differ from the original quote. The change order conversation determines whether the customer accepts additional charges as a fair consequence of changed scope or feels nickel-and-dimed. The goal is to handle every change order with clarity about what changed, why, and what it costs - producing a final invoice the customer expects rather than disputes.

Scope

This SOP applies to:

• Service work where additional issues are discovered after the original quote
• New install work where conditions on site differ from estimate assumptions
• Customer requests to add scope after work has begun
• Repair work that uncovers related issues needing attention
• Any situation where the final invoice will exceed the original quote

Roles and responsibilities

Definitions

Change order: any work that goes beyond the original quote's scope; either adding work or changing the planned approach.

Discovery: encountering conditions or issues not visible at the time of the original quote.

Scope creep: additional work that gets done without formal change order; the customer is surprised by the final invoice.

Authorized change order: customer agreed in writing (or verifiably) before the work was done.

Procedure

Step 1: Stop work when change is needed

When the technician encounters a situation that goes beyond the original quote:

• STOP the work that goes beyond
• Continue work that is within the original scope (if possible)
• Document the condition or change with photos

Do NOT proceed with extra work and bill for it later. The customer's reaction to a surprise bill is universally negative.

Step 2: Document the change

Photograph and notate:

• What was discovered or changed
• Why it requires the change order
• What the change involves (added work, removed work, modified approach)
• Estimated time and cost

Step 3: Communicate to the customer

Explain in the customer's language:

• "Hey, while I was [in the work], I noticed [the situation]"
• "What this means is [what's happening]"
• "Here are the options: [option 1 with cost], [option 2 with cost], or [skip it]"
• "Which would you like to do?"

Avoid:

• Jargon the customer doesn't understand
• Pressure ("we need to fix this NOW")
• Vague pricing ("it'll cost some more")

Customer needs:

• Clear explanation of the change
• Clear understanding of options
• Clear understanding of cost
• Time to think (if not urgent)

Step 4: Get customer authorization

Three forms of authorization, from strongest to weakest:

Written authorization (strongest): customer signs a change order document (paper or digital signature on tablet)

Verbal authorization on recorded line: only if calls are recorded with disclosure; not common in field service

Verbal authorization in person: with the technician documenting in writing what was authorized, and the customer initialing the technician's notes

For changes over a specific dollar threshold (typical a moderate cost), require written authorization. Smaller changes can be verbal-with-documentation.

Step 5: Update the work order

The technician or office updates the work order to reflect:

• Original scope
• Authorized changes
• New total
• Customer's name/signature on the change

The final invoice references both the original quote and the change orders.

Step 6: Complete the changed work

Perform the authorized additional work. Document completion.

Step 7: Final invoice

The invoice shows:

• Original quoted amount
• Each change order separately with its cost
• New total

The customer sees exactly what changed and what each change cost.

Step 8: Customer follow-up

After completion:

• Walk the customer through the change orders and the new total
• Verify customer understanding
• Address any concerns immediately
• Capture customer's signature on the final invoice

When NOT to do a change order

Some situations call for absorbing the change rather than charging:

• Misquote on contractor's part: contractor missed obvious things; absorb the cost
• Trivial additions: 15 minutes of additional work; absorbed as goodwill
• Customer goodwill build: occasional small additions absorbed for repeat customers
• Discovery of pre-existing damage caused by previous contractor: identify but don't necessarily bill (depends on situation)

The contractor's judgment: nickel-and-diming for every small thing damages the relationship; absorbing too much eats margin. The middle path: absorb 15 minutes of work; everything beyond is a documented change order.

Customer-requested changes

When the customer says "while you're here, can you also..." :

• Acknowledge the request positively
• Quote the additional work
• Get authorization
• Schedule (if not feasible this visit)

A customer who feels their additional requests are welcomed is more loyal than one who feels rebuffed. But every "while you're here" request is real work and deserves real billing.

Common change order situations

HVAC: discovered duct issue

Original scope: install new condenser. Discovered: ductwork is leaking 30 percent of airflow.

Change order conversation: "While I was checking the ductwork, I noticed it's leaking about 30 percent of your airflow. That means your new condenser will run longer and not deliver the comfort you're paying for. I can seal the major leaks for $X, or we can leave it and revisit later."

Plumbing: discovered corroded pipe

Original scope: install new water heater. Discovered: shut-off valve corroded; supply line corroded for the first 6 inches.

Change order conversation: "While I was disconnecting the old heater, I noticed your shut-off valve is corroded. If I install the new heater without replacing it, you'd have no way to shut off water to the heater. I recommend replacing the valve for $X."

Electrical: discovered code issue

Original scope: install ceiling fan. Discovered: the existing box is not rated for fan (only fixture).

Change order conversation: "This box isn't rated to hold a fan; only a light fixture. To install the fan correctly, I need to replace the box with a fan-rated one. That's $X additional. If we install without the upgrade, the fan could fall."

Multi-issue discovery

Sometimes one issue leads to another:

References

• UCC contract law on modification.
• State consumer protection laws on construction and service contracts.
• AGC (Associated General Contractors) change order best practices.
• BBB standards for contractor business practices.
• Manuall internal: Universal Customer Trust After Mistake, Universal Estimating Quoting.